Business
is straightforward. Sell more than you spend. The less linear
issues are
to whom,
what, where, and how? The answers lie in a focused objective, defining the scope
of the playing field, framing a strategic business/marketing plan,
implementing its tactics, assessing its results, and executing
preplanned adjustments.

Establish a compass heading

Aim your business & marketing
scope at prospective customers. Identify their desires. Define
products and services to
fulfill
their desires. Next draft a trial run profit &
loss statement with a rough estimate of your operating expenses plus the sales number needed to exceed break-even -- become profitable. If the numbers look feasible, carry on. Your customer prospects are now the compass heading of your business aspirations. Consequently .....

..... all business activity should ultimately be aimed atinviting your customer prospects to do business with the business.

Appraise the landscape

Refocus your business/market scope to the following spheres of business that you cannot influence: the
national and local economy, government, and the
competition. What are the gurus of
finance projecting regarding the national economy? What are the global trends that influence key
resources such as oil? How are the major industries
performing?What are the economic effects
of the federal government?In particular, review the following four trend settingfactors. 1. The Federal government's fiscal policy
Tax cuts
& limited government spending will generate a positive economic
trend.
Tax
increases with increased government spending will generate a negative trend. 2. The Federal Reserve's monetary policy
A low
inflation policy and result will support a positive trend.
High
inflation robs consumer purchasing power which leads to a negative trend. 3. Energy prices
Stable
or lower energy cost support a positive trend.
Increased energy cost decreases discretionary spending which leads
negative. 4. Medium income
Increasing incomes puts more dollars in customers pockets -- a positive trend.
Decreasing medium incomes reduces discretionary
spending -- not good.
Next survey your customer prospect
locale (trade area) to corroborate your data. Real
estate,
automotive sales, and large retailers are reliable indicators. Identify and visit significant competitors. How and
what
are they doing? A
personal visit and a handshake can generate
significant information. It may also develop into surprisingly unintended cooperating relationships.

Sales forecast
Return to your trial profit & loss statement. Replace its "sales number needed to break even" with a
more probable number. This is achieved with the assistance of the following7 step sales forecast. Handbook Note: Given the big box dominates the TV category, this forecast
eliminates TV sales . 1. Web search total U.S. sales of independent audio/video dealers.

Handbook Note: Step 5.5- Factory sales reps and distributors. Find your manufacturer's U.S. market share. The CTA has the number. Multiply the number by the step #4 market share result. If you sell to big boxes and independents, bypass step #6 & #7. If you sell exclusively to independents, then continue to step 6. 6. Assume the big box and department stores own 50% of total sales. In the SacMetro example, that's approx $14.25 million. Independent AV dealers own the balance. Therefore in our example, the projected sales of independent SacMetro AV dealers = $14.25 million.7.Subtract the sales of your
independent competitors from the result of #6. Make best guess per dealer or divide #6 by the
number of significant competitors.Go or no go?Will the result of step #7 still support your trial numbers?
If yes, move forward. If no, then you must take market share
from
the
competition to succeed. Review your data and make the
call. If you still choose to jump into the adrenalzing waters of
the audio/video business world, then proceed to the next page.